outstanding foreign currency loan (FCCB) which was utilized for investment in
subsidiary. The assessee had outstanding FCCB loan of Rs. 151.14 crores ... order is as
under:
8.1 The appellant obtained FCCB loan and invested the same in the shares of its
subsidiary namely Sintex Holdings
capital purpose loss on
FCCB loan is 164.96 crores loan is 49.04 crores and on HSBC loan is 49.04
Crores.
21.5. From the balance sheet ... secured foreign currency loan from banks Rs. 378 crores (302 crores in
preceding year) and unsecured foreign currency loans on FCCB and bank
account of gain in foreign exchange fluctuation
related to liability towards FCCB, the A.O. treated them as taxable ... payment of FCCB. There is no
dispute as far as amount of foreign exchange gain related to liability of FCCB loan related to its
utilization
FCCB) in financial year 2007-08
relevant to assessment year 2008-09 from two overseas entities.
As a result of exchange fluctuation, the FCCB loan ... FCCB bought
back". According to the assessee, the loan through the FCCB
being a capital receipt, the discount thereon was also capital
receipt
into capital. Therefore, the expenditure
incurred in relation to rising of loan through FCCB are to be allowed as revenue
expenditure till the date ... absence of any
conversion into share capital the entire FCCB remain as a loan on assessee.
Therefore no expenditures incurred in issuing the FCCB
Dcit, Chennai vs Sical Logistics Ltd., Chennai on 18 August, 2017
आयकर अपील य अ
said loss is capital in nature, because the
assessee has taken FCCB loans and used for capital expenditure
and therefore, amortization of expenditure towards forex ... Since the assessee has incurred forex loss on FCCB loans
and the same has been used for acquiring assets in India, the same
should
appreciate that it is
well settled law that FCCB when issued is a loan,
whether it is convertible or non convertible would not
militate against ... unsecured loans' in
the Balance Sheet. The exchange fluctuation on FCCB loan was treated
as capital receipts and the exchange fluctuation loss, as capital
Bank Interest.
Further, the assessee also submitted a copy of the FCCB loan
account and also the interest on FCCB account. A copy ... interest paid on Foreign Currency
Convertible Bonds (FCCB):
i) AO disallowed the interest paid on FCCB as the assessee has not
deducted TDS as required
capital purpose
loss on FCCB loan is 164.96 crores loan is 49.04 crores and on HSBC
loan is 49.04 Crores. 21.5. From the balance sheet ... secured foreign currency loan from banks
Rs. 378 crores (302 crores in preceding year) and unsecured foreign
currency loans on FCCB and bank
